Nortel Network, the former telecommunication equipment giant that filled for bankruptcy protection in January is set to sell off its division that makes equipment for GSM cellular networks.

Nortel recently filed a motion with the U.S. Bankruptcy Court of the District of Delaware to set up an open auction of its GSM business. A similar motion will be filed with the Ontario Superior Court of Justice in Canada. Nortel said it has had initial discussions with potential buyers.

In July, Ericsson won the auction for Nortel's CDMA business with a bid of $1.13 billion. That acquisition would allow Ericsson to expand its presence in North America where Nortel is based.

Bidders have until Nov. 5 to submit their offers for the GSM business.